The interest rates on your credit card could be making it difficult for you to keep up with your payments. The best way to avoid paying high interest on credit cards is to pay your balance in full each month. If you are like most people, this is probably not something you are able to do too often. Fortunately, there are some steps you can take if you are looking to get a lower interest rate on your credit cards.
Step 1
Pay your credit card payments on time each month. The Federal Reserve Board reminds consumers that by consistently paying your credit card payments on time, you will create a good credit history, which equates to lower interest rates. If you pay by mail, it's always best to mail out your payment several business days before the due date to avoid late payments.
Step 2
Contact your credit card provider to request a lower interest rate. If you always pay your bill on time without fail, a credit card company is more likely to lower your interest rate. The same is true if you have never exceeded the credit limit available for your account. You might be surprised to learn that many credit card companies will lower interest rates simply because you have been a good customer. Even if you call the company first, follow up by putting your request in writing (see Resources).
Step 3
Ask your credit card company to lower your interest rate to the rate that it currently is offering to new customers even if it is just an introductory rate. Find out whether the company is willing to extend the same offer to you, especially if you have been a valued customer for an extended period of time.
Step 4
Talk to your credit card issuer to inquire if it will match another credit card offer you have received. If you have good credit, you probably receive offers from other credit card companies for credit at lower rates of interest. Let your card issuer know that you are willing to keep your credit card with that company if it matches the lower interest rate.
Step 5
See if your credit card provider is willing to forgive one over-the-limit fee or late payment fee. This may be a possibility if you have had a good payment record overall with your credit card company. If your interest rate has been raised because of a late fee, talk to the company about removing that fee to reestablish a more affordable interest rate.
Step 6
Consider transferring your credit card balance or balances to a card with a lower interest rate. If your current card company will not lower your interest rate, you might need to find a better credit card. However, use caution if the low interest rate is only offered for a specific period of time. Make certain that the interest rate will not be higher than your current rate after the introductory period ends.
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